An intercompany services agreement is a formal agreement made between two or more than two companies in order to jot down the details of their predefined association for a fixed period of time. Any intercompany services agreement is made when one of the companies agrees to provide a certain service or services to the other company/companies in return for a certain payment. These types of agreements are legally enforceable because they consist of certain terms and conditions which need to be followed by the involved parties in order to avoid any kind of legal ramification.
An intercompany services agreement defines clearly the kind of services the ‘provider’ company shall provide to the ‘recipient’ company and at what price. The agreement document consists of details like names of the parties, their addresses, phones numbers, commencement and termination date of the agreement, monetary details and the covenants and promises made by the involved parties.
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